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Lexus & Jag Rank Highest In J.d. Power Study:


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Jaguar and Lexus Rank Highest in J.D. Power Study

The Daily Auto Insider

Thursday, November 18, 2004

November 2004

Although new-vehicle buyers are paying more for their vehicles compared to 2003, satisfaction with the dealership's vehicle prices has actually increased, according to a news release about the J.D. Power and Associates 2004 Sales Satisfaction Index Study.

The study finds that the median price paid for a new vehicle in 2004 is $26,000 — up from $25,500 in 2003. However, the rate of interest on car loans has fallen from an average of 4.8 percent in 2003 to 4.5 percent in 2004. Zero-percent financing, offered mainly by domestic brands, continues to play an important role in the automotive industry. Eleven percent of buyers financed their new vehicle with a 0% interest rate in 2004 compared to 9 percent in 2003. Also, the average length of a new-vehicle loan has increased from 58 months in 2003 to 59 months in 2004.

"The availability of low-interest financing continues to change the way consumers pay for their new vehicles," said Scot Eisenfelder, senior vice president at J.D. Power and Associates. "Buyers are willing to pay a higher sticker price as long as the interest rate is low and they can afford the payments."

The study also finds that customer satisfaction with the vehicle delivery process has declined. Customer ratings with vehicle delivery are particularly lower in terms of the cleanliness of the vehicle, timeliness of delivery and the amount of time the salesperson spends explaining vehicle features.

"At a minimum, customers expect that their new vehicle will be clean and in good condition," said Eisenfelder. "Surprisingly, this is not always the case. Declining gross margins for dealers are placing more pressure on salespeople to make the sale and, consequently, they are too often ignoring delivery. Since delivery is typically the last contact the salesperson has with the customer, this can have a dramatic effect on sales satisfaction with the dealership."

With significant improvements over 2003, Jaguar and Lexus tie to rank highest in sales satisfaction. Both Jaguar and Lexus make the biggest improvements in the areas of dealership facility and price. Jaguar improves its SSI score by 24 points over 2003 and receives particularly strong ratings from customers for the salesperson. Lexus improves 14 index points over 2003, leading the industry in dealership facility and delivery.

Hummer is the most improved brand in the study, increasing 29 points over 2003. Hummer, which expanded into the mainstream market with the H2 in 2003, appears to benefit from experience and the easing of typical issues a new brand faces. For example, Hummer dealerships have eased up on their pricing compared to 2003, when dealerships were able to demand full MSRP or above. Hummer customers are also more satisfied with the size of the inventory.

The 2004 Sales Satisfaction Index Study is based on responses from 39,335 buyers and lessees of new vehicles. The study, which was fielded in August and September of 2004, provides the automotive industry with a comprehensive analysis of the new-vehicle purchase experience.

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Jag has made HUGE improvements in quality and dealer service.

Sorry to say that has not been my experience with Jaguar. I bought an '02 X-Type and had many problems; drive shaft replaced, center console replaced, both front lower control arms replaced, rear shock mounts replaced, etc. The dealer was clueless each time I brought my car in for something new. I had to reaserch the problems, which were common to most X-Types at the time, and show then the TSB's. I got Jaguar Customer Relations involved, but dealing with them was as bad as the dealer. They completely denied any of these problems, even though others on one of the Jaguar discussion groups posted the TSB #'s. I finally got a meeting scheduled with a Jaguar After-Sales Rep and she mediated a "deal" with the local dealership to sell me an '03 S-Type for dealer's invoice and take my car in trade. The MSRP on my X-Type was $41,000 and after only 11 months and 5000 miles, it was only worth $23,000. Lost almost 50% of its value in 1 year.

The S-Type was a better built car, but I still had problems with it. The transmission lurched when accelerating from a rolling stop. Jaguar issued a recall for that, which involved loading an updated version of the transmission programing. That changed the lurch from acceleration to lurching when coming to a stop. The transmission also began to groan, like it was slipping, when briskly accelerating. It also failed to start and had to be flatbedded to the dealer. Since I didn't have an appointment when my car arrived at the dealers, I had to wait a week for them to look at it. I was told they had no loaners to offer me, but if I wanted, I could call Enterprise and arrange for one. When I picked up my car after a week, it had bird droppings encrusted over the entire car and the one-touch operation for the windows and sunroof no longer worked. I also had problems with false warnings from the rear park assist. The dealer changed the control module and one of the sensors. I still got false warnings and decided to call it quits with Jaguar after having my S-Type for 22 months and 9000 miles. That's when I bought my LS.

I still monitor the same Jaguar discussion group and it does seem like Jaguar has made improvements to the newer X-Types. The current XJ8 also seems to be pretty trouble-free. But from the comments I have read about dealer service would make me question the accuracy of the report. Some Jaguar owners rave about the service, while others have nothing good to say. Good Jaguar service seems to be very spotty across the country and, at least in my experience, if you need Jaguar Customer Service to help with an issue, you'd have a better chance in changing GW Bush to "Pro Choice".

Mike

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But if you think about it Lexus owners are the same way, some rave about the service while others are displeased to the point of being combative...

Years ago, Jaguar was known to have brake and electrical problems galore. I guess they're getting better now.

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How many Jag dealers are there anyway?  Aren't most of them in specialty shops with some other brands?

In the New York City area there are plenty of 'standalone' Jag dealers.

Well, sure. Ain't that where all them rich people live? :D

Yup, and I'm one of them. :P

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We have them all over in Louisiana. I guess us rednecks like them too! :D However, we only have 3(or 4? I can't remember!) Lexus dealers in the state!

I've had mixed Lexus dealer service experiences to follow up with what Steve said. In New Orleans, it was horrible, but in Baton Rouge it was excellent--it went the way I was always told about Lexus service experiences. I guess the service writers in Baton Rouge are smart enough to look past my age to see that I'm the one with the money, and treating me poorly won't help them get my business.

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We have them all over in Louisiana. I guess us rednecks like them too! :D However, we only have 3(or 4? I can't remember!) Lexus dealers in the state!

I've had mixed Lexus dealer service experiences to follow up with what Steve said. In New Orleans, it was horrible, but in Baton Rouge it was excellent--it went the way I was always told about Lexus service experiences. I guess the service writers in Baton Rouge are smart enough to look past my age to see that I'm the one with the money, and treating me poorly won't help them get my business.

Blake,

I have to admit I was initially disappointed with my Lexus service experience here in New Orleans until I expressed my feelings to the Service Manager and told him what my expectations were/are. Since then, he has personally handled my service calls and has given me his cell phone number in case I want to contact him when he is away from his desk. Now I feel much better about their service and believe it will get even better when the new facilities are complete.

The local Jaguar dealer (same owner as in Baton Rouge) has a service manager that is abrasive, disinterested in investigating fixes to unusual problems and continually uses that hated term "they all do that". He became even worse after I got Jaguar Customer Relations involved in problems with my first Jaguar. I will never own or recommend a Jaguar, not so much because of the cars, but because of the local dealer and Jaguar Customer Relations' belief that their only customer is the dealer.

Mike

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Blake,

I have to admit I was initially disappointed with my Lexus service experience here in New Orleans until I expressed my feelings to the Service Manager and told him what my expectations were/are. Since then, he has personally handled my service calls and has given me his cell phone number in case I want to contact him when he is away from his desk. Now I feel much better about their service and believe it will get even better when the new facilities are complete.

The local Jaguar dealer (same owner as in Baton Rouge) has a service manager that is abrasive, disinterested in investigating fixes to unusual problems and continually uses that hated term "they all do that".

Mike

I just said to hell with them(after a few bad experiences) with the thought that LeBlanc would be handling any serious service needs I run into. They are a great dealership. It's a very small dealer, but the people and showroom are all first class. I'm transfering to LATech(in Ruston. LSU was not my first choice, but classes are going well.), and I can't wait to see what Lexus of Bossier City is like! And, I'll be about 3hrs away from JP Importz in TX!

Hmm....Paretti? :whistles: lol

Blake

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